RusRating places Life Factoring on watch list
The rating is based on healthy earnings and a highly-diversified factoring portfolio of good quality.
Constraining factors include relatively modest capital adequacy, external funding highly concentrated by individual creditor, and a small market share in large-scale factoring deals.
About the Company
Life Factoring Company specialises in the provision of factoring services to small and mid-sized enterprises, in some cases via partnerships with state-owned SME Bank under federal government SME support programmes. The Company belongs to the LIFE Group headed by ProbusinessBank; that bank’s senior managers are its ultimate beneficiary owners.
Capital adequacy is relatively modest. External liabilities consist mainly of bank loans, with LIFE group resources accounting for a third of the total. Asset quality is healthy, thanks mainly to a well-diversified factoring portfolio with a moderate delinquency ratio and high percentage of recourse contracts. Earnings performance is healthy. Liquidity is sufficient. Risk sensitivity is high.
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